Hindalco Q1 Results FY2023, PAT at Rs. 4119 crores

On 10th August 2022, Hindalco announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- Consolidated revenue for the first quarter stood at Rs. 58,018 crore from Rs. 41,358 crore, up by 40% YoY

- Hindalco reported an all-time high EBITDA of Rs. 8,640 crore, up by 27% YoY. The excellent results were driven by better macros, robust performance of Aluminium Downstream and Copper businesses along with better operating efficiencies. 

- Consolidated PAT in Q1 FY23 was at a record Rs. 4,119 crore up from Rs. 2,787 crore in Q1 FY22, a jump of 48% YoY

-  Consolidated Net Debt to EBITDA remained strong at 1.40 times on June 30, 2022 compared to 2.36 times on June 30, 2021.

Business Highlights:

- Novelis reported its best ever quarterly adjusted EBITDA of $561 million (vs $555 million), up 1% YoY, primarily due to higher product pricing, favourable product mix and higher recycling benefits. Novelis reported record adjusted EBITDA per ton of $583 in Q1 FY23, compared to $570 in the prior year quarter.

- Aluminium Upstream EBITDA stood at Rs. 3,272 crore in Q1 FY23, compared with Rs. 2,317 crore for Q1 FY22, an increase of 41% YoY, primarily due to favourable macros, higher volumes, better operational efficiencies, partially offset by higher input costs.

- EBITDA for the Copper business was at a record Rs. 565 crore in Q1 FY23 compared to Rs. 261 crore in Q1 FY22, up 116% YoY, on the back of higher domestic sales, better operational efficiencies and improved by-product margins

- Copper Cathode production was at 92 Kt in Q1 FY23 (vs 63 Kt in Q1 FY22) while copper rod production was 79 Kt in Q1 FY23 (vs 44 Kt in Q1 FY22). Overall copper metal sales were at 101 Kt (vs 80 Kt in Q1 FY22). Copper Continuous Cast Rod (CCR) sales at a record 80 Kt in Q1 FY23 (vs 46 Kt in Q1 FY22), were up 73% YoY driven by improved quality and reliable operations

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said: “After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures. Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world’s best EBITDA margins. Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach.”